Barratt pledges to build 15 000 homes a year

LEICESTERSHIRE: Barratt, Britain's biggest housebuilder, plans to build around 15 000 home a year by 2015 after a 14% rise in completions in the past year.

The firm said it had recovered from the 2008 housing slump and expects to build up to half of next year's completions on higher margin new land.

Barratt reported operating profits up 42% to £191m in the year ending June on revenue ahead 14% at £2.3bn.

Mark Clare, chief executive, said: "Going forward, it is likely that some pressure will continue to be felt as raw material prices rise due to underlying commodity price increases.

"However, we will seek to mitigate this by continuing to drive further efficiency savings and reductions in operating costs across the business."

The company warned that while housing needs continue to grow, the number of new homes being built would only see a sustainable increase with a step change in mortgage lending.

Barratt's plans would see its active sites rise from around 387 to 450 in number. The turn-around in fortunes saw pre-tax profits jump 159% to £111m and debt almost halved to £167.7m. Mr Clare said private forward sales were up 15.3% to £609.6m as at 9 September 2012.